Sales for a Product Have Been Fairly Consistent Over Several

question 20

Multiple Choice

Sales for a product have been fairly consistent over several years,although showing a steady upward trend.The company wants to understand what drives sales.The best forecasting technique would be:

• A)trend models.
• B)judgmental methods.
• C)moving averages.
• D)regression models.
• E)exponential smoothing techniques.

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Definitions:

Operating Costs

Expenses associated with the daily operations of a business, including rent, utilities, and payroll, but excluding costs directly related to production.

Working Capital Investment

The funds invested in a company's short-term assets like inventory and receivables minus short-term liabilities, facilitating day-to-day operations.

Cash Inflows

Money received by a business from its operational activities, investments, or financing.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.